We mention Kush Bottles Inc (OTCMKTS:KSHB) fairly routinely here on Street Register. The last time, we were talking about its merger agreement to acquire Summit Innovations, a distributor of hydrocarbons to the legal cannabis industry based in Denver. Hydrocarbon gases are used to extract oils from cannabis plants, and the acquisition would mark Kush Bottles’ entry into a new business vertical, supplying gas to cannabis extractors.
We often comment that we like the fact that KSHB serves the cannabis industry without being directly involved in its handling or sale, shielding its profits from any potential federal interference- a specter which still casts a shadow over all existing cannabis businesses in the US, regardless of the local laws in effect.
The acquisition plans were finalized with Kush Bottles Inc (OTCMKTS:KSHB) recent announcement that it had officially closed on its acquisition of Summit, a leading distributor of hydrocarbons to the legal cannabis industry based in Denver, Colorado. Summit Innovations was acquired in exchange for 1,280,000 shares of Kush Bottles common stock and approximately $3.2 million in cash, subject to certain adjustments and holdbacks, as further described in the Company’s press release dated April 10, 2018.
Summit Innovations operates seven distribution facilities located across the country. Its four core products are high purity butane, propane, iso-butane and blends. Summit works closely with legal cannabis manufacturers to ensure cleanliness, product quality, safety and compliance during the extraction process.
“We are pleased to close this acquisition and secure our entry into the hydrocarbon segment of the cannabis market,” commented, Nicholas Kovacevich, CEO and Chairman of Kush Bottles. “Gas is the lifeblood of the cannabis market and Summit Innovations offers a broad range of hydrocarbon gases that meet the complex needs of cannabis extractors across the country. By bringing Summit Innovations under the Kush Bottles umbrella, we expect to leverage synergies in our distribution channels to grow sales at both Summit and our existing business lines. This is a major step forward in our strategy to position Kush Bottles as a one-stop shop for any business looking to operate responsibly within the legal cannabis market.”
The Company continues to evaluate new technologies and developments within the industry as it builds out a diversified suite of products and services that are integral to the proper functioning of the cannabis supply chain.
Kush Bottles will issue up to an additional 1,280,000 shares of Kush Bottles common stock if the Summit Innovations business achieves certain earn-out milestones of up to $12.0 million in eligible revenues during the twelve-month period following closing. (Source: PR Newswire)
To date, Kush Bottles has sold more than 1 billion units and now regularly services more than 5,000 legally operated medical and adult-use dispensaries, growers, and producers across North America, South America, and Europe with its packaging solutions alone. The Company has facilities in the three largest U.S. cannabis markets and a local sales presence in every major U.S. cannabis market. We are eager to see how it incorporates these other cannabis sector support services into its present business, which was already impressive to us, in and of itself. We will actively track the story moving forward. Stay locked to Street Register for updates, and we’ll deliver important developments on KSHB as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in KSHB stock, short or long.